(2009-07-31) Cash For Clunkers Vs Renewables

I just heard about the CashForClunkers program for the first time. It sounds profoundly stupid to me

• you need to "turn in" a AutoMobile that get less than 18mpg (more precisely, that's based on the rated-when-new combined-mileage)

  • it can be brand new; it must be less than 25years-old.

• then you get a credit of $3500 for buying a car that gets 22+mpg; the credit increases to $4500 if the difference between new and old car is 10mpg.

  • actually, if the new car is an SUV, you get $3500 for just 2mpg of improvement, and $4500 for just 5mpg of improvement!

This is a lame Auto Industry Bail-Out.

It's created as being "green", but any mileage benefit is bound to be dwarfed by the Pollution associated with dumping a car that still works.

This program has been so "successful", it is running out of money after 1 week of operation. So, of course, the answer is to pour more money into it. Unfortunately, that money seems to be coming from Renewable Energy programs!

Update: Umair Haque defends it. Argh.